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Better off renting or buying?

By Dian Hymer, Monday, November 16, 2009.

The push for an ever-increasing homeownership rate in this country recently led to a huge housing bubble, followed by a tsunami of foreclosures and declining home prices. Lax lender qualification a few years ago fueled a run-up in home prices that couldn't last. It left many homeowners who bought beyond their means with damaged credit and without a home.

Homeownership has been the American dream. But owning a home isn't for everyone. Factors often not taken into consideration by homebuyers is that homeownership requires a lot of time, effort and a financial commitment that goes beyond merely paying your principal, interest, property taxes and insurance. more...

Winning a multiple-offer competition

By Dian Hymer, Monday, November 9, 2009.

Lately, the home-sale market has picked up in some areas and price ranges. Multiple-offer competitions are more prevalent, particularly in popular neighborhoods where there's little for sale.

It's always difficult to decide what to offer when you're in competition. It helps if you've done your homework and you know local market values well. Working with a good real estate agent who can keep you informed on current market trends is helpful. The Internet has a wealth of information about listings in most areas of the country. more...

Get real with unrealistic sellers

By Dian Hymer, Tuesday, November 3, 2009.

In some areas there is a shortage of desirable, well-priced listings. Sellers who don't need to sell now are waiting for a better market. Many sellers who would like to sell now have unrealistic expectations about what a buyer would be willing to pay for their home.

One approach if you like a listing that is overpriced for the market is to keep your eye on it and wait for a price reduction. The risk of this approach is that another buyer might come along and start a negotiation with the seller. It would be unfortunate if you were to find out later that the listing sold for a price that you would have been willing to pay. more...

Make your short sale shine

By Dian Hymer, Monday, October 26, 2009.

Short sales, where the lender agrees to take less than amount due to them, have tended to sell for less than similar homes in the area. One reason for this is that short-sale listings usually don't look as good as the competition. Another reason is that short sales require lender approval.

Last year, lenders often took three to six months to respond to a short-sale offer. If the response was no, the buyer was out looking for another home after having wasted a lot of time. Many buyers who expected short sales to be good deals shied away from them altogether after having a few bad experiences. more...

Tips for avoiding surprise defects

By Dian Hymer, Monday, October 19, 2009.

A homebuyer in the hills above Oakland, Calif., recently closed on a home that matched her wish list almost perfectly, which is as good as it gets. Before closing, the new home was inspected, and no major defects were discovered.

The buyer had plans for upgrading, starting with removing all the wall-to-wall carpets. But when the carpets were pulled up, the house began to smell of cat urine.

The new owner called her agent who recommended several people who have experience eradicating pet odor. more...

Sellers stung by wishful thinking

By Dian Hymer, Monday, October 12, 2009.

A charming home in a coveted Oakland, Calif., neighborhood almost sold last year, even though the market for high-end listings was challenging at best. The sellers selected a list price that their agent thought was a good price for the market.

Two offers materialized, one at the asking price and one for $20,000 more. The sellers had their mind set on a higher price, so they refused both offers and eventually took the home off the market.

After realizing they'd made a mistake, they offered their home for sale again this year at a lower price to reflect changes in the market over the past year. more...

A stabilization for housing?

By Dian Hymer, Tuesday, October 6, 2009.

Sales of existing homes increased a larger-than-expected 7.2 percent in July, compared to June 2009, according to the National Association of Realtors. Pending sales rose 6.7 percent in June 2009 from a year ago and 3.6 percent compared to the previous month. This was the fifth month in a row that the pending-sale index increased.

Pending sales are sales where an offer has been accepted, but the sale has not yet closed. Even though some pending sales never close, pending sales are an indicator of current buyer activity. This increase can be attributed to low interest rates, a pickup in foreclosure sales and improved affordability. more...

Condo-purchase deal-breakers

By Dian Hymer, Monday, September 28, 2009.

Condos are a popular choice for first-time buyers as well as homeowners who want to downsize because they tend to be less expensive than single-family residences. Also, they usually require less maintenance.

Condominium owners belong to a homeowners association (HOA) that collects dues, usually on a monthly basis, to pay the cost of common-area liability insurance and maintenance, as well as to fund a reserve account. HOA dues often pay for more -- sometimes exterior painting, garbage collection and roof repairs. Precisely what is covered by HOA dues varies from one condo complex to another. more...

Sellers, be careful what your listing says

By Dian Hymer, Monday, September 21, 2009.

Internet advertising dominates the home-sale industry, which is not to say that print ads are dead. A good home-for-sale ad -- either online or in a newspaper -- should contain enough factual information to interest a buyer without overstating reality.

Sellers and listing agents can go overboard selling their listings. It's usually better to undersell. For instance, your house might have three bedrooms and a bonus room that you use as a fourth bedroom. Unless the bonus room was permitted as a bedroom, you could face adverse legal consequences if you advertise it as a fourth bedroom. more...

Is now a good time to downsize?

By Dian Hymer, Monday, September 14, 2009.

Interest rates are low. Prices have come down in many areas. More buyers are deciding it's a good time to buy, even though it may be a while before the housing market stabilizes.

Buyers who have a house to sell face a more complicated situation than they did when they bought their first home. They may not be able to afford to buy a new house before selling the old one. And, it may be more difficult to find a home to buy, because many sellers are not selling now due to current market conditions. more...

Staging could land sellers in trouble

By Dian Hymer, Tuesday, September 8, 2009.

Fixing your house up for sale is highly recommended in the current market if you hope to sell within a reasonable period of time and for an acceptable price. Today's buyers want turnkey houses that they can move right into without having much work.

In addition to repairing defects that might turn a buyer off, your house should be clean, tidy and look attractive. From a marketing point of view, most homes contain too much furniture and knickknacks that make it difficult for buyers to appreciate what the place has to offer. If your home is too personalized with your own belongings, buyers might have difficulty envisioning living there. more...

Tech playing key role in real estate deals

By Dian Hymer, Monday, August 31, 2009.

Invariably, buyers or sellers are faced with important decisions at the most inconvenient times. They may be on vacation or on a business trip. Even if you're in town, you may be tied up in meetings and unable to take time to drive to your real estate agent's office.

There are ways to deal with this that will minimize the hassle and enable you to respond in a timely fashion. Timing is essential in the home-sale business. If sellers have to wait too long for a response, their enthusiasm might wane. Buyers, on the other hand, could find themselves bidding against another buyer if they make an offer on a hot new listing and can't respond to a counteroffer in time. more...

Be picky when picking real estate agent

By Dian Hymer, Monday, August 24, 2009.

Assembling the right team of professionals to assist you during a home purchase or sale is imperative, particularly in today's challenging home-sale market. Selecting the right real estate agent can be critical to your ultimate success.

As in any business, there are good agents and ones that aren't so good. Don't confuse years in the business or number of homes sold with quality service. Some top-performing agents provide their clients with excellent service. Agents who do a lot of business have a wealth of experience to draw from that can be helpful when problems arise. more...

Appraisal rules tangle with home values

By Dian Hymer, Tuesday, August 18, 2009.

How much your home is worth depends on who's looking at it. Your home insurer will value your home in terms of the cost to rebuild it. A mortgage lender's appraiser will value your property in terms of the sale prices of similar homes in your neighborhood that sold recently. The property tax assessor may have a different set of criteria.

Due to recent changes in the economy, the market value of your home could be considerably less than it was a few years ago. However, don't be too quick to ask your insurance carrier to drop the valuation on your homeowner's insurance. This would save you money, but could leave you underinsured. more...

Final walkthrough a buyer's best friend

By Dian Hymer, Monday, August 10, 2009.

Imagine this. You move into your new home for the first time after closing and, although you transferred the utilities into your name, the lights don't turn on. There isn't a single light bulb left in the house, the yard is overgrown and the leaky faucets the sellers were to have fixed still leak.

Most homebuyers aren't faced with such an unpleasant surprise. You can gain some degree of control over the situation by completing a walkthrough inspection of the property within five days of closing.

Your purchase contract should include a clause that grants the buyers permission to do a final walkthrough inspection sometime close to the closing date. more...

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